The high unemployment rate, the inflation and the damaged currency are all factors that have contributed to the foreclosures and bankruptcy wave in modern society. Every one of these financial catastrophes has a victim or household that is suffering from a ruined credit rating and little to no cost. They often rely on weekly paychecks, unemployment benefits and government assistance to get through the week. Almost all still require a car.
The website BHPH is aimed at those who are left behind in a struggling economic environment. The BHPH model is a car dealer that sells to people who do not have credit or cash but charge high rates of interest, offer substandard vehicles, and take unconscionable collection measures against those who are behind in their payments. These businesses are essential for modern living, but they’re also often criticized by the public because of their predatory practices.
Analysts suggest that the BHPH industry should be viewed as a market for financial services rather than merely an automobile market. They seem to be more concerned with collecting payments on loans at high interest rates, and using cars as collateral (rather then post-dated check, for instance). Those that don’t pay will lose their cars, and it is the responsibility of the poor to pay the high interest rates demanded by BHPH dealers.
In a normal process, shoppers can look at the cars they like and discuss their financing options. Before showing potential buyers cars, BHPH dealerships often discuss credit histories, downpayments and payment amounts. BHPH customers are required to report physically to the dealer to pay their bill after choosing a car. Repossessions can occur if payments are late even by one day.